Success measurement of cluster organisations

1. Success measurement of cluster organisations
Round Table Discussion
Zoltan Bendo
Tenderix Consulting and Research
Skopje, 19 October 2011

2. ’... And the total was greater than the sum of parts’
Defining clusters 1/3
Quote from Steve Jobs (1955 - 2011)
’My model for business is The Beatles
They were four guys that kept each other’s negative
tendencies in check; they balanced each other. And the total
was greater than the sum of parts.’
60 Minutes Interview, 2008
2
Source: www.slideshare.net

3. From a phenomenon of economic geography to a tool of
developmeny policy…
Defining clusters 2/3
Hollywood
USA
Film making
... cluster based
development approach …
… cluster development
Monte Carlo policy …
Gambling
… strategic cluster
development …
… good practices in
Champagne cluster policy …
France … cluster
Champagne accreditation …
production … measurement of
cluster performance …
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4. We can observe a number of differences between the two
categories of clusters
Defining clusters 3/3
Clusters as
Geographic phenomena Development tools
1. Huge size (critical mass is there) 1. Tiny size (5-10 SMEs)
2. Emerged 2. Established
3. With long track record 3. New initiatives
4. Competition among members 4. No competition among members
5. No legal entity 5. Legal entity
6. Numerous connections between 6. Moderate number of connections
the entities between the entities
7. Cluster management 7. Cluster management
organisation as a service organisation as the governor of
provider the cluster
8. Not dependant on public money 8. Heavily dependant on public
money
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5. Numerous EU initiatives support the development of clusters –
sometimes too many…
EU initiatives in support of clusters
Appropriate
Statistics and skills
services European European
Cluster Cluster
Observatory Excellence Policy incentives
Initiative & practical tools
(ECEI)
Policy INTERREG
recommendations Networks
European European
Cluster Policy Cluster
Group Alliance Cluster
(ECPG) (ECA) Innovation
Platforms
Regions of Knowledge networks (FP7) Other initiatives are welcome
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Source: Nikos Pantalos, Support for Innovation Unit, EC DG Enterprise, Presentation:
International Cluster Cooperation

6. What do we measure?
The three levels of the nutshell model
Issues for consideration
3. Framework conditions
• Acceptable required effort
• Methodology of assessment
shall be valid for all types of
clusters
2. Cluster actors • General macroeconomic
conditions shall not
superimpose effects
1. Cluster organisation/ generated by the cluster
cluster management • Additionality
organisation
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Source: European Cluster Excellence Initiative, WP2 and www.cluster-escellence.eu

7. VDI/VDE-IT developed great experience in the past years in the
evaluation and benchmarking of clusters and cluster initiatives
Initiative Kompetenznetze Deutschland by VDI/VDE-IT
The agency – VDI/VDE-IT
• VDI/VDE-IT is the head office of the German Cluster Initiative
’Kompetenznetze Deutschland’
• Broad scope of activities in the field of cluster management and
analysis including: The VDI/VDE-IT
o Governance/management of cluster and networks
o Evaluation and benchmarking of clusters and cluster initiatives methodology is
o Cluster mapping and cluster analysis
becoming the
The initiative – Kompetenznetze Deutschland
• Club of the best 100 innovation networks in Germany mainstream tool
• Actively support the best clusters in their further development
• Increase networking between industry and research for the
• Support in particular clusters with international reputation
measurement of
The methodology of cluster benchmarking cluster success in
• Set of indicators (>30) pcs measuring the performance of the
cluster organisation mainly Europe
• Based on information given by the cluster manager
• Original idea: assistance for the jury of Kompetenznetze
Deutschland, decision support tool, to be applied only in Germany
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Source: www.vdivde-it.de

8. In the largest international analysis of its kind more than 140
cluster management organisations were benchmarked
NGPExcellence 1/3
The project
• NGPExcellence – Cluster Excellence in the Nordic Countries, Germany and Poland
Background
• More than 140 cluster management organisations from 8 countries were benchmarked
• Initiated by the Danish Ministry of Science, Technology and Innovation, supported by the German
Federal Ministry of Economics and Technology and its national cluster program ’Initiative
Kompetenznetze Deutschland’, the Nordic Council of Ministers and Nordic Innovation
• The benchmarking was conducted from October 2010 to July 2011
Objective
• To contribute to the development of outstanding clusters through excellent management and excellent
cluster programs
• The project pays particular attention on the characteristics of cluster management organizations and
their effects on cluster development
Methodology
• Benchmarkings were based on a structured face-to-face interview with cluster managers
• Self-assessment – so the result and usability depends on whether the interviewee gave correct answers
• Cluster management organizations were benchmarked both with their peers from the same technology
field and with the complete comparative portfolio
Source: Lämmer-Gamp, Thomas/Meier zu Köcker, Gerd/Christensen, Thomas Alslev, 2011:
Clusters Are Individuals. Creating Economic Growth through Cluster Policies for Cluster 8
Management Excellence, Danish Ministry of Science, Technology and Innova-tion/Competence
Networks Germany, Copenhagen/Berlin

9. The benchmarking of cluster management organizations
focused on 5 dimensions covering 34 indicators
NGPExcellence 2/3
Structure of the cluster Cluser management and Achievement and recognition of
governance/Strategy of the CO the cluster organisation
1. Age of the CO
1. Assignment of tasks/clarity of role definitions of 1. Intensity of external requests for co-
2. Legal form of the CO
the cluster management and the cluster members operation
3. Nature of the cluster: driving forces
2. Number of cluster members per employee (FTEs) 2. Origin of external co-operation requests
4. Nature of the cluster: degree of
of the CO 3. Geographical dimension of the external
specialisation
3. HR competences and development in the CO co-operation requests
5. Composition of the cluster membership
4. Strategic planning and implementation processes 4. Characteristics of co-operation with
(Committed members)
5. Thematic and geographical priorities of the foreign clusters
6. Regional concentration of the cluster
cluster strategy 5. Media appearances
members (Committed members)
6. Impact of work of the CO on R&D
7. Utilization of regional growth potential
Services provided by the CO (spectrum activities of the cluster members
8. International members of the cluster
and intensity) 7. Impact of the work of the CO on
9. Nature of co-operation between cluster
1. Acquisition of third party funding business activities of the cluster members
members
2. Collaborative technology development, 8. Impact of business-oriented services of
Financing of the cluster technology transfer or R&D without 3rd party the CO on business activities of the SME
management funding members
1. Current sources of financing of the CO 3. Information, matchmaking and exchange of 9. Degree of internationalisation of cluster
2. Share of private financing of the CO in experience among members members
relation to the age of the cluster 4. Development of HR 10. Impact of the work of the CO on
3. Financial sustainability of the CO 5. Development of entrepreneurship international activities of the cluster
6. Matchmaking and networking with external members
partners/promotion of cluster location
7. Internationalisation of cluster members
CO = Cluster Organisation
Source: Lämmer-Gamp, Thomas/Meier zu Köcker, Gerd/Christensen, Thomas Alslev, 2011:
Clusters Are Individuals. Creating Economic Growth through Cluster Policies for Cluster 9
Management Excellence, Danish Ministry of Science, Technology and Innova-tion/Competence
Networks Germany, Copenhagen/Berlin

10. The excellence of the cluster management does matter to a great
extent
NGPExcellence 3/3
Key findings
1. Research-driven clusters are much more similar to industry-clusters than previous
research suggested;
2. Clusters with a small or high share of public funding are similar in terms of structure
and governance, but different in terms of impact;
3. The visibility and attractiveness of a cluster and the impact of the cluster management
organization on SME development depends on its age and size; apparently, larger and
matured clusters provide a much better environment for results and impacts through
activities of a cluster management organization;
4. The structural characteristics of a cluster in terms of e.g. size, governance structure or
degree of specialization as well as the impact of the work of a cluster management
organization depend on the technology field it is operating in;
5. Clusters with a high impact on business activities of SME feature an active cluster
management organisation in terms of spectrum and frequency of business-related
services.
Source: Lämmer-Gamp, Thomas/Meier zu Köcker, Gerd/Christensen, Thomas Alslev, 2011:
Clusters Are Individuals. Creating Economic Growth through Cluster Policies for Cluster 10
Management Excellence, Danish Ministry of Science, Technology and Innova-tion/Competence
Networks Germany, Copenhagen/Berlin

11. Assessment of the absolute quality of cluster organisation
excellence according to a scale negotiated on European level
European Cluster Excellence Initiative
Rationale
• Labelling excellent clusters is becoming common practise within Europe but an
internationally harmonised and recognised approach is missing
Background
• A PRO INNO Europe Initiative to raise the excellence of cluster management in the EU
• 14 project partners develop a meaningful set of quality indicators and assessment procedures for the
evaluation and documentation of Cluster Management Excellence
• Project coordinator: International Centre for Competitiveness, IESE Business School
• Project implementation period: 09.2012 – 08.2012
• Funded by DG Enterprise and Industry of the European Commission
Methodology – work is still in progress!
• Focus on cluster organisation and cluster actors
• The goal is to create an objective process for measuring and assessing Cluster Management Quality
• A mutually agreed and structured set of quality indicators will be developed
• As a result of negotiation on European level a measurement scale (from insufficient to excellent)
shall be defined
• A score above 80% of the theoretical maximum is considered excellent
• Minimum thresholds defined are need to be eligible for a ’Quality Label’
• Methodology will be available from 2012
• Domains of indicators: (1) Structure of the cluster; (2) Typology, governance, cooperation; (3)
Financing cluster management; (4) Strategy, objectives, services; (5) Achievements, recognition
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Source: www.cluster-excellence.eu

12. Cluster accreditation is used in Hungary to filter clusters
applying for grants from the Structural Funds
Cluster accreditation in Hungary 1/2
Overview
▪ Select and classify the clusters that:
o Are able to reach significant international and
Aim domestic performance
o Have further potential remarkable opportunities
o Are not rent-seekers • The accreditation is an
▪ The accreditation license is valid for 2 years expert evaluation
Duration system with the aim of
▪ After 2 years the license has to be renewed
selecting the most
Frequency of ▪ Continuous application promising initiatives
the ▪ Cluster accreditation quarterly
accreditation • The Accreditation
Committee comprised
▪ Sole right for applying for dedicated pole program of governmental
sources decision makers and
The ▪ Advantages and preferential treatment in some calls for
accreditation reputable economists
proposals (extra points in the selection process) from the private sector
entitles for ▪ New members of the cluster (joining the cluster after the
accreditation) can benefit also from the above
advantages
Accreditation ▪ The clusters successfully going through the
Certificate accreditation process receive a certificate
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Source: Pole Programme Office, MAG Zrt., EPAP

13. The focus is rather on the performance of the cluster members
than on the cluster organisation
Cluster accreditation in Hungary 2/2
Groups Pcs of criterion Content of the criterion group
▪ 10 ▪ Evaluation of the forms and content of ▪ The accreditation
I. Cooperations in the cooperations in the cluster model is based on
the cluster
quantitative and
qualitative criteria
▪ 2 ▪ Analysis of the sort and number of that have been
II. Members of the cluster members determined by
cluster experts and have
been tested on
operating clusters
III. Business ▪ 5 ▪ Examination of market-proven success
performance of the
SME members
35 with emphasis on the export activities
and high added value
▪ The model is a
coherent
evaluation system
▪ 4 ▪ Analysis of R&D activities in the cluster grouped to five
IV. R&D subcategories
performane
▪ The model aims to
▪ Analysis of the cluster’s vision and select cooperations
▪ 14
V. Strategic and strategy which reached
operational plan ▪ Filtering the cooperations without market-proven
relevant content success
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Source: Pole Programme Office, MAG Zrt., EPAP

14. Thank you for your attention!
Contacts
e-mail: zoltan.bendo@tenderix.hu
www.tenderix.hu
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